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Organizational variables include decision rights, business processes, formal reporting relationships, and ____________. 1. formal networks 2. business networks 3. informal reporting relationships 4. informal networks 5. formal reporting relationships

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Answer:

The correct answer is number (4): informal networks.

Explanation:

Organizational variables are those components of the organization that influence in the decision-making. There are four main organizational variables:

  • Decision rights: authority to initiate, approve, implement, and control decisions.
  • Business processes: tasks needed to fulfill corporate goals.
  • Formal reporting relationships: structure to set up the coordination line within the firm.
  • Informal networks: groups that transmit information outside the formal reporting relationships.

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